MCX Silver is expected to remain in the band of 70,400 and 72,000 - ICICI Direct
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Metal’s Outlook:
Bullion Outlook:
• Spot gold is likely find the floor near $2010 and rebound towards $2045 on expectation of moderation in key US inflation numbers. US CPI is expected to dip to the 3% mark against previous reading 3.4%. Moreover the core inflation numbers is also likely to soften, which would provide scope for Federal reserve to cut the interest rates. Further safe haven buying in the yellow metal amid geopolitical unrest in Mideast would restrict its downside.
• MCX Gold April price is likely to consolidate in the band of 61,800 and 62,600. Only a move above 62,600 would bring fresh buying in the metal and push the price towards 63,000 levels. On the flip side below 61,800 it would weaken towards 61,500.
• MCX Silver is expected to remain in the band of 70,400 and 72,000. Only a move above 72,000 it would turn bullish.
Base Metal Outlook:
• Copper prices are expected to move in a range ahead of the key US inflation numbers. Meanwhile, sluggish growth outlook and lower demand ahead of the Lunar New year holiday in China would check any major upside in the metal prices. Meanwhile, persistent decline in inventory level in LME could limit more downside in prices. Further, any new measure from China to support the economy would aid prices.
• MCX Copper is expected to move in the band of 700 and 710. Only a sustained move above 710 would push the price towards 714. On the flip side a move below 700 would weaken the price towards 695.
• Aluminum is expected to consolidate in the band of 199 to 202.50. Below 199 it would test next support at 198.
Energy Outlook:
• NYMEX Crude oil is expected to hold its strength and move towards $78 amid rising Mideast tension. Further, second voluntary production cut in December by Iraq as committed to OPEC would also support the oil prices. Meanwhile, all focus will be on key US inflation data due today. Any sign of moderation in inflation numbers would pave the way for first interest rate cut in US and which will support the crude oil demand.
• MCX Crude oil is likely to move towards 6410, as long as it holds above the 6250 levels. Only close above 6410 would push the price further towards 6500 levels.
• MCX Natural gas is expected to remain under pressure and slip further towards 148 level as long as it trades below 158 level. Forecast of warm US winter and higher inventory levels would weigh on the prices.
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